Phase-sensitive amplification (PSA), which is produced by degenerate
four-wave mixing (FWM) in a randomly-birefringent fiber, has the
potential to improve the performance of optical communication systems.
Scalar FWM, which is driven by parallel pumps, is impaired by the
generation of pump-pump and pump-signal harmonics, which limit the level,
and modify the phase sensitivity, of the signal gain. In contrast, vector
FWM, which is driven by perpendicular pumps, is not impaired by the
generation of harmonics. Vector FWM produces PSA with the classical
properties of a one-mode squeezing transformation.